Download Australian 2017-18 Budget Portfolio Statements

INSPECTOR-GENERAL OF TAXATION
Section 1:
Entity overview and resources .......................................................... 247
1.1
Strategic direction statement ........................................................................ 247
1.2
Entity resource statement ............................................................................. 248
1.3
Budget measures .......................................................................................... 248
Section 2:
2.1
Outcomes and planned performance ................................................ 249
Budgeted expenses and performance for Outcome 1 .................................. 250
Section 3:
Budgeted financial statements .......................................................... 253
3.1
Budgeted financial statements...................................................................... 253
3.2
Budgeted financial statements tables ........................................................... 254
245
INSPECTOR-GENERAL OF TAXATION
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The objective of the Inspector-General of Taxation (IGT) is to improve tax
administration through investigation of tax complaints, conducting broader reviews,
public reporting and independent advice to Government and its relevant entities.
The IGT’s strategic direction for 2017-18 is to achieve this by delivering independent
advice for improvement through:
•
establishing and maintaining an effective and efficient complaints handling
function;
•
identifying and prioritising areas of tax administration for improvement; and
•
conducting reviews and making recommendations for improvement to
Government, the Australian Taxation Office (ATO) and the Tax Practitioners Board
(TPB).
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Inspector-General of Taxation Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total funding from all sources available to the IGT for its
operations and to deliver programs and services on behalf of the Government.
Information in this table is presented on a resourcing (that is, appropriations/cash
available) basis, whilst the ‘Budgeted expenses for Outcome 1’ table in Section 2 and
the financial statements in Section 3 are presented on an accrual basis.
Table 1.1: Inspector-General of Taxation resource statement — Budget estimates
for 2017-18 as at Budget May 2017
2016-17
Estimated
actual
$'000
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b)
Departmental appropriation (c)
Departmental capital budget (d)
Annual appropriations - other services - non-operating
Prior year appropriations available (e)
Total departmental annual appropriations
Total departmental resourcing
Total resourcing for the Inspector-General of Taxation
2017-18
Estimate
$'000
5,188
6,565
29
6,647
6,495
30
323
12,105
12,105
12,105
323
13,495
13,495
13,495
2016-17
2017-18
Average staffing level (number)
35
35
Prepared on a resourcing (i.e. appropriations available) basis.
Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow
statement.
(a) Appropriation Bill (No. 1) 2017-18.
(b) Excludes $0.5 million subject to administrative quarantine by Finance or withheld under section 51 of the
PGPA Act.
(c) Excludes departmental capital budget (DCB).
(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form
part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting
purposes, this amount has been designated as a 'contribution by owner'.
(e) Appropriation Bill (No. 2) 2014-15 and 2015-16.
1.3
BUDGET MEASURES
The IGT has no new budget measures.
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Inspector-General of Taxation Budget Statements
Section 2:
Outcomes and planned performance
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programs are the
primary vehicle by which Government entities achieve the intended results of their
outcome statements. Entities are required to identify the programs which contribute to
Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs. The following
provides detailed information on expenses for each outcome and program, further
broken down by funding source.
Note:
Performance reporting requirements in the Portfolio Budget Statements are part of the
enhanced Commonwealth performance framework established by the Public
Governance, Performance and Accountability Act 2013. It is anticipated that the
performance criteria described in Portfolio Budget Statements will be read with
broader information provided in an entity’s corporate plans and annual performance
statements – included in Annual Reports - to provide an entity’s complete performance
story.
The most recent corporate plan for the IGT can be found at: Corporate Plan.
The most recent annual performance statement can be found at: Annual Performance
Statement.
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Inspector-General of Taxation Budget Statements
2.1
BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1
Outcome 1:
Improved tax administration through investigation of complaints, conducting
reviews, public reporting and independent advice to Government and its relevant
entities
Budgeted expenses for Outcome 1
Table 2.1 shows how much the IGT intends to spend (on an accrual basis) on achieving
the outcome, broken down by program and Departmental funding sources.
Table 2.1: Budgeted expenses for Outcome 1
2016-17
Estimated
actual
$'000
Program 1.1: Inspector-General of Taxation
Departmental expenses
Departmental appropriation
6,565
Expenses not requiring
appropriation in the Budget
331
year (a)
6,896
Departmental total
Total expenses for
6,896
program 1.1
2017-18
Budget
2018-19
Forward
estimate
$'000
2019-20
Forward
estimate
$'000
2020-21
Forward
estimate
$'000
6,495
6,465
6,469
6,499
352
336
336
281
6,847
6,801
6,805
6,780
6,847
6,801
6,805
6,780
$'000
2016-17
2017-18
35
35
Average staffing level (number)
(a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses and
amortisation expenses.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as Government priorities change.
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Inspector-General of Taxation Budget Statements
Table 2.2: Performance criteria for Outcome 1
The table below details the performance criteria for each program associated with
Outcome 1. It also summarises how each program is delivered and where
2017-18 Budget measures have created new programs or materially changed existing
programs.
Outcome 1
Improved tax administration through investigation of complaints, conducting reviews, public
reporting and independent advice to Government and its relevant entities.
Program 1.1 – Inspector-General of Taxation
To improve tax administration through investigation of complaints, consulting with
stakeholders to prioritise areas of tax administration for review as well as providing
independent advice to the Government, the ATO and the Tax Practitioners Board (TPB).
Delivery
•
•
•
effective handling of tax administration complaints
identify and prioritise areas of tax administration for improvement
conduct reviews and make independent recommendations for
improvement to Government, the ATO and the TPB
Performance information
Performance criteria
2016-17 targets
2017-18 and the forward
year targets
•
•
•
•
•
•
effective handling of tax
administration
complaints
efficient conduct of
reviews into tax
administration issues
publication of reports on
tax administration
independent advice to
Government and
relevant entities on
improvements to tax
administration
•
•
•
•
positive feedback on IGT
complaints handling and
broader reviews from
community stakeholders
including taxpayers, tax
practitioners, other citizens
and relevant Government
entities
responding to tax
administration complaints
responding to tax
administration issues
through reviews
issuing public reports on
tax administration issues
providing independent
advice and
recommendations to
Government and its
relevant entities on
improvements in tax
administration
251
•
•
•
tax administration
complaint responses
positive feedback on
complaints handling and
broader reviews from
community stakeholders
including taxpayers, tax
practitioners, other
citizens and relevant
Government entities
areas of tax
administration for
improvement identified
and prioritised through
complaints handling and
stakeholder consultation
reviews, reports and
recommendations on
areas of tax
administration identified
for improvement
Inspector-General of Taxation Budget Statements
Performance information
Performance criteria
2016-17 targets
Purposes
Our role is to improve tax administration through investigation
of tax complaints, conducting broader reviews, public reporting
and independent advice to Government and its relevant
agencies.
Our objectives are to:
• establish and maintain an effective and efficient complaints
handling function;
• identify and prioritise areas of tax administration for
improvement; and
• conduct reviews and make recommendations for
improvement to Government, the ATO and the TPB.
252
2017-18 and the forward
year targets
Inspector-General of Taxation Budget Statements
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive
snapshot of IGT’s finances for the 2017-18 budget year, including the impact of budget
measures and resourcing on financial statements.
3.1
BUDGETED FINANCIAL STATEMENTS
3.1.1 Differences between entity resourcing and financial statements
There are no material differences between the IGT’s resourcing and the financial
statements.
3.1.2 Explanatory notes and analysis of budgeted financial statements
The financial statements have been prepared on an Australian Accounting Standards
basis.
The IGT is budgeting for a break-even operating result in 2017-18.
253
Inspector-General of Taxation Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS TABLES
Table 3.1: Comprehensive income statement (showing net cost of services)
for the period ended 30 June
2016-17
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
Gains
Other
Total gains
Total own-source income
Net (cost of)/contribution by
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
2017-18
Budget
$'000
2018-19
Forward
estimate
$'000
2019-20
Forward
estimate
$'000
2020-21
Forward
estimate
$'000
4,047
2,518
331
6,896
4,269
2,226
352
6,847
4,516
1,949
336
6,801
4,718
1,751
336
6,805
4,837
1,662
281
6,780
-
-
-
-
-
(6,896)
6,565
(6,847)
6,495
(6,801)
6,465
(6,805)
6,469
(6,780)
6,499
(331)
(352)
(336)
(336)
(281)
Note: Impact of net cash appropriation arrangements
2016-17
2017-18
2018-19
2019-20
2020-21
$'000
$'000
$'000
$'000
$'000
Total comprehensive income/(loss)
excluding depreciation/
amortisation expenses previously
funded through revenue
appropriations
less depreciation/amortisation
expenses previously funded through
revenue appropriations (a)
331
352
336
336
281
Total comprehensive income/(loss)
- as per the statement of
(331)
(352)
(336)
(336)
(281)
comprehensive income
(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and
select corporate Commonwealth entities) were replaced with a separate capital budget (the departmental
capital budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs,
please refer to Table 3.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
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Inspector-General of Taxation Budget Statements
Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2016-17
Estimated
actual
$'000
2017-18
Budget
$'000
ASSETS
Financial assets
Cash and cash equivalents
109
109
Trade and other receivables
3,940
3,940
Total financial assets
4,049
4,049
Non-financial assets
Land and buildings
1,486
1,240
Property, plant and equipment
92
80
Intangibles
184
120
Total non-financial assets
1,762
1,440
Total assets
5,811
5,489
LIABILITIES
Payables
Suppliers
35
35
Other payables
120
120
Total payables
155
155
Provisions
Employee provisions
1,046
1,046
Total provisions
1,046
1,046
Total liabilities
1,201
1,201
Net assets
4,610
4,288
EQUITY*
Contributed equity
1,230
1,260
Reserves
398
398
Retained surplus
2,982
2,630
Total equity
4,610
4,288
*‘Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
255
2018-19
Forward
estimate
$'000
2019-20
Forward
estimate
$'000
2020-21
Forward
estimate
$'000
109
3,940
4,049
109
3,940
4,049
109
3,940
4,049
994
84
56
1,134
5,183
748
79
2
829
4,878
502
75
2
579
4,628
35
120
155
35
120
155
35
120
155
1,046
1,046
1,201
3,982
1,046
1,046
1,201
3,677
1,046
1,046
1,201
3,427
1,290
398
2,294
3,982
1,321
398
1,958
3,677
1,352
398
1,677
3,427
Inspector-General of Taxation Budget Statements
Table 3.3: Departmental statement of changes in equity — summary of
movement (Budget year 2017-18)
Retained
earnings
$'000
Opening balance as at 1 July 2017
Balance carried forward from
2,982
previous period
Adjusted opening balance
2,982
Comprehensive income
Surplus/(deficit) for the period
(352)
Total comprehensive income
2,630
Transactions with owners
Contributions by owners
Departmental capital budget (DCB)
Total transactions with
owners
Closing balance attributable to
2,630
the Australian Government
Prepared on Australian Accounting Standards basis.
256
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
319
79
1,230
4,610
319
79
1,230
4,610
319
79
1,230
(352)
4,258
-
-
30
30
-
-
30
30
319
79
1,260
4,288
Inspector-General of Taxation Budget Statements
Table 3.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2016-17
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
8,042
Total cash received
8,042
Cash used
Employees
4,047
Suppliers
2,518
Total cash used
6,565
Net cash from/(used by)
1,477
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
1,506
equipment and intangibles
Total cash used
1,506
Net cash from/(used by)
(1,506)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
29
Total cash received
29
Net cash from/(used by)
29
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
109
beginning of the reporting period
Cash and cash equivalents at
109
the end of the reporting period
Prepared on Australian Accounting Standards basis.
257
2017-18
Budget
2018-19
Forward
estimate
$'000
2019-20
Forward
estimate
$'000
2020-21
Forward
estimate
$'000
6,495
6,495
6,465
6,465
6,482
6,482
6,499
6,499
4,269
2,226
6,495
4,516
1,949
6,465
4,718
1,764
6,482
4,837
1,662
6,499
-
-
-
-
30
30
31
31
30
30
31
31
(30)
(30)
(31)
(31)
30
30
30
30
31
31
31
31
30
30
31
31
-
-
-
-
109
109
109
109
109
109
109
109
$'000
Inspector-General of Taxation Budget Statements
Table 3.5: Departmental capital budget statement (for the period ended 30 June)
2016-17
Estimated
actual
$'000
2017-18
Budget
$'000
2018-19
Forward
estimate
$'000
2019-20
Forward
estimate
$'000
2020-21
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
29
30
30
31
31
Total new capital appropriations
29
30
30
31
31
Provided for:
Purchase of non-financial assets
1,506
30
30
31
31
Total items
1,506
30
30
31
31
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation 29
30
30
31
31
DCB (a)
Funded internally from departmental
1,477
resources (b)
TOTAL
1,506
30
30
31
31
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
1,506
30
30
31
31
Total cash used to acquire assets
1,506
30
30
31
31
(a) Does not include annual finance lease costs. Includes purchases from current and previous years'
departmental capital budgets (DCBs).
(b) Consists of funding from current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from
the DCB).
Prepared on Australian Accounting Standards basis.
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Inspector-General of Taxation Budget Statements
Table 3.6: Statement of asset movements (Budget year 2017-18)
Land and
Buildings
Property,
plant and
equipment
$'000
Intangibles
Total
$'000
$'000
$'000
As at 1 July 2017
Gross book value
1,646
486
312
2,444
Accumulated depreciation/
amortisation and impairment
(160)
(394)
(128)
(682)
Opening net book balance
1,486
92
184
1,762
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation ordinary
annual services (a)
30
30
Total additions
30
30
Other movements
Depreciation/amortisation expense
(246)
(42)
(64)
(352)
Total other movements
(246)
(42)
(64)
(352)
As at 30 June 2018
Gross book value
1,646
516
312
2,474
Accumulated depreciation/
amortisation and impairment
(406)
(436)
(192)
(1,034)
Closing net book balance
1,240
80
120
1,440
(a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)
2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
259